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# Skyworks CEO Says Its Largest Customer Won't 'Just Hand Us Business' After Qorvo Deal
- URL: https://www.bullished.co/skyworks-ceo-says-its-largest-customer-wont-just-hand-us-business-after-qorvo-deal-3a9f6a16/
- Published: 2026-11-03T22:36:44.000Z
- Updated: 2026-11-03T22:36:44.000Z
- Description: Phil Brace says the merged company must keep earning its top account, while input costs press margins and supply caps growth.
- Author: Matteo Parrino
- Tags: Earnings, SWKS, Industry: Technology

Skyworks CEO Phil Brace said on the company's earnings call that its largest customer "is not going to just hand us business because all of a sudden we're combined," a day-one reality check for the newly closed merger with Corvo. Skyworks, which designs analog and mixed-signal chips for wireless signals, power and timing, closed the deal on October 5 and guided the combined company to $1.8 billion to $1.9 billion of December-quarter revenue.

## No change to the award process

Asked by a TD Cowen analyst whether the larger scale would alter how the largest customer awards content, Brace said he does not expect the award process to change. [Skyworks](https://www.bullished.co/tag/swks/) is now a larger provider for that customer, he said, but the market "remains to be a highly competitive market" and the company must keep executing.

Pressed later about the customer's recent long-term agreement with a competitor, Brace said the competitive landscape has changed a little in the number of suppliers. He added: "We earn it every single day," with thousands of people working on it.

CFO Philip Carter said that on a standalone basis the largest customer accounted for approximately 62% of September-quarter revenue, including non-smartphone products. Carter said Skyworks is tracking to its earlier expectations for that customer this quarter and sees sequential growth. Skyworks generally guides only one quarter at a time, he said.

## Android shrinks, smartphone sales slip

On a pro forma combined basis, smartphone revenue was approximately $4.6 billion in fiscal 2026, down approximately 11% year over year, Brace said, reflecting the expected Android decline and content dynamics at the largest customer. The company expects December-quarter smartphone revenue to fall in the low teens percent sequentially.

Answering an RBC Capital Markets analyst, Carter said Corvo's revenue was guided down 17% sequentially, or 10% without the extra week, with Android down more than 20% sequentially. Android could be nearing a bottom in fiscal 2027, he said, and should be under 10% of the smartphone business.

Diversified growth markets, which include data center, defense and automotive, totaled approximately $2.9 billion on a combined basis in fiscal 2026, up approximately 12%. Brace said those businesses are supply constrained, with demand far exceeding what the company can make.

## Costs squeeze margins

Skyworks' standalone September-quarter revenue was $1.05 billion, with non-GAAP (adjusted) earnings of $1.28 a share. The company expects adjusted gross margin of 46% to 48% in December and adjusted earnings of $1.25 a share at the revenue midpoint.

Input costs remain a drag, Brace said. Carter said cost increases are easier to pass on in diversified markets than in smartphones, where contracts run a year or two. The company has made deposits and prepayments with vendors to lock in costs and capacity.

Management remains committed to $500 million or more of annual cost synergies, about two-thirds from operating expenses. It expects roughly $150 million in operating-expense synergies in fiscal 2027, exiting the year at an annualized $250 million to $300 million.

Beginning with its February call, Skyworks will report only on a combined basis, split into smartphone and diversified growth markets.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### More on Skyworks Solutions

- [Skyworks Finishes Qorvo Combination, Guides To $1.80 Billion To $1.90 Billion In December-Quarter Sales](https://www.bullished.co/skyworks-finishes-qorvo-combination-guides-to-1-80-billion-to-1-90-billion-in-december-ff3eb72a/)
- [Qorvo CEO Gets 409,175 Skyworks Shares In Merger, Then 149,555 Are Withheld For Taxes](https://www.bullished.co/qorvo-ceo-gets-409-175-skyworks-shares-in-merger-then-149-555-are-withheld-for-taxes-b3f4e1f5/)
- [Skyworks Issues $778 Million Of 2029 Notes And $647 Million Of 2031 Notes To Retire Most Of Qorvo's Bonds](https://www.bullished.co/skyworks-issues-778-million-of-2029-notes-and-647-million-of-2031-notes-to-retire-most-of-2ac79a24/)

[All Skyworks Solutions (SWKS) coverage →](https://www.bullished.co/tag/swks/)